Motor insurance

Uninsured Vehicles Will Be Auctioned to Compensate Victims

You must have often heard that the insurance for your vehicle must be renewed on time and you might have never taken this statement too seriously. I am sure you have wondered why should this be done…

You must have often heard that the insurance for your vehicle must be renewed on time and you might have never taken this statement too seriously. I am sure you have wondered why should this be done? Driving a vehicle without a valid insurance is illegal but now there is more reason why you cannot ignore this. As per the latest order by the Supreme Court of India, if you meet with an accident and the vehicle is not insured, the uninsured vehicles will be auctioned to compensate victims.

The Supreme Court Ruling

As per the latest order by the apex court of the country, all union territories and states have to formulate rules to auction uninsured vehicles to pay for the claim of the victims. This order will be applicable to any vehicle which does not have a valid insurance policy. The ruling was passed by the Supreme Court on 13th September, 2018 in the latest case of Usha Devi vs. Union of India. The court had earlier passed an order in the case of Jai Prakash Vs. National Insurance Company Limited.

How Can This Rule Affect You

If you are a vehicle owner, this order by the Supreme Court is very important for you and you must understand its implications. Let us try and explain why this order is important and how can it affect you:

  • If you meet with an accident while driving a vehicle which either was not insured or the insurance of which has expired, then your vehicle will be seized by the government of the state and you will be given a time of three months to pay for the loss suffered by the third party
  • If you fail to pay the claim of the third party for their losses, then the state government will auction your vehicle, and the amount that comes from this auction will be used to compensate the loss of the third party
  • The order has to be implemented by the Union Territories and the state government within 12 weeks from the date the Supreme Court passed the order.
  • The court has passed the order keeping in mind those who cannot pay and due to which the third party suffers more
  • The idea behind the order is that no one uses a vehicle without a valid vehicle insurance and to ensure that no victim suffers just because the vehicle is not insured
  • It is stated in the order that if a motor vehicle in not insured and is involved in an accident, the state cannot release the vehicle especially when there is an injury, death or property damage of third party

How Can You Save Your Vehicle?

Now that you have understood the order of the Supreme Court, you must be wondering how can you ensure that such a situation does not arise and you do not need to see your vehicle being auctioned. Here are some tips you can follow:

  • Ensure you compare vehicle insurance provided by different insurance companies and buy the comprehensive policy. It is simple to compare and buy vehicle insurance online and it all can be done in very less time.
  • If you already have an insurance policy for your vehicle, renew it before expiry. Again, renewing insurance online is extremely simple and can be done easily.
  • There is an online verification process in place now which avoids the problems associated with waiting for an agency for inspection and submission of documents. Due to this system a policy which is expired can be renewed in a few minutes. So, if your vehicle insurance has expired, go online and renew it.

In the present times, everyone has a vehicle and I am sure you do too. The court has given this order to ensure that there are no vehicles running on the road without a valid insurance policy. The insurance companies and authorities have set up processes which has made it easy for you to renew your car insurance in few clicks. Thus, with all the facilities and provisions available, the owners of vehicles have no excuse to not renew the policy. Use the well-designed systems, and renew your policy now if it is about to expire or if it already has. Why should you let a third party suffer for your negligence and of course, why should you lose your vehicle in an auction, when it will take you some time only to have a valid insurance.

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